The ASEAN-South Korea Free Trade Agreement, which took effect on June 1, will give Vietnam an opportunity to boost exports to South Korea, but the country had to brace itself up for fierce competition, said Mr. Bui Quang Hao, the Vietnamese commercial counselor in the South Korea.
The new agreement would remove tariff barriers by 2010 against 92 per cent of goods traded between ASEAN and South Korea.
Under the agreement, the South Korea will give tax exemption for 7,991 out of 12,063 products while ASEAN countries will reduce import tax rates to 0-5 per cent for 45 per cent of products on the list.
To raise competitiveness, Vietnam must improve the quality of exports, diversify types and designs and promote trademarks of products, Mr. Hao said.